Sale of motor vehicles

ISIC 451 covers both wholesale and retail. Under the QFZP regime, 'Distribution of goods or materials' is a Qualifying Activity only if performed in a Designated Zone and the counterparty is a Reseller. Retail sales to end-consumers are strictly Excluded Activities. Forensic audit will focus on verifying the 'Reseller' status of customers via Trade Licenses and VAT TRNs.

Audit Red Flag

Re-characterizing B2C retail sales (Excluded) as B2B distribution (Qualifying) to claim the 0% rate on end-user transactions.

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